Evercore ISI downgraded Hyatt to In Line from Outperform, arguing its recent catalysts have already played out. The broker cut its 2026 net revenue estimate by 3% and EBITDA by 3%, leaving both projections below consensus. This marks the largest negative revision in Evercore's lodging preview.

While broader U.S. lodging trends are improving, Hyatt's valuation has rerated by about two turns on EV EBITDA over the past year. Its distribution segment, which accounts for 27% of revenue, has seen profitability fall 42% since 2022. RevPAR in key international markets has also flattened after a period of growth.

Evercore now views Hyatt's shares as fairly valued, noting the stock has priced in recent wins like the Playa real estate sale and credit card renewal. The firm reiterated Marriott as its top pick, suggesting investors may find better risk-reward elsewhere in the sector.